Dave Ramsey Ch. 1 & 2 Study Guide

What is Dave Ramsey's First Foundation of Personal Finance?

• Save Money
• Don't spend money
• $25 Emergency Fund
• $500 Emergency Fund

What is an example that you can use the $500 Emergency Fund for?

• Groceries
• Car broke down
• Your friend needs $50
• Black Ops III

Is it a good idea to keep your Emergency Fund mixed with your everyday spending money?

• Yes
• No

What is the Second foundation of personal finance?

• Get out of Debt
• Buy Stuff
• $100 Emergency Fund
• Finance your Car

What is the Third foundation of Personal Finance?

• Pay cash for stuff
• 5 year financing on car purchases
• Pay cash for your car
• 4 year financing on car purchases

What is the Fourth foundation of Personal Finance?

• Go to a cheap college
• Avoid Private Schools
• Get financial aid
• Pay cash for college

What is the Fifth foundation of Personal Finance?

• Build Wealth and Give
• Pay cash for your boat
• Spend, Spend, Spend
• Pay cash for vacation home

Saving money over time for a large purchase.

• Installment Fund

• Sinking Fund

Interest paid on interest previously earned.

• Compound Interest

• Interest

The saving habits of Ben and Arthur best illustrate which principle of saving? 

• The length of time money is invested matters
• The amount of the initial investment is the key 
• Rate of return matters
• Both A and C